Directors’ share protection can provide a lump sum in the event of the death or critical illness of a director/shareholder.
The loss of a director/shareholder can have serious consequences for those left behind. The business itself is likely to have lost key expertise. In addition, shares held by directors in family businesses are often inherited by beneficiaries who have not historically been involved with the company.
A payment from a directors’ share protection policy can provide a lump sum to offset the costs of replacing lost expertise and to assist the remaining directors to “buy out” the deceased’s beneficiaries.